President Javier Milei labeled economist Emmanuel Álvarez Agis a 'thief' for proposing a 10% tax on cash withdrawals to combat tax evasion. Álvarez Agis, a former deputy minister under Cristina Kirchner's government, argued the measure would encourage electronic payments and business formalization. Milei likened the idea to legalized robbery on his X account.
Economist Emmanuel Álvarez Agis, head of PxQ consultancy and former deputy minister of Economy during the last two years of Cristina Fernández de Kirchner's government, proposed taxing cash use as part of a scheme to reduce tax evasion. In interviews with El Destape and Modelo para Armar, he explained it as a 'stick and carrot' approach: the 'stick' would tax cash to discourage its use, while the 'carrot' would be a simpler, lower 'business monotributo' for shops to ease formalization.
Álvarez Agis illustrated: 'I think we need to charge a tax on cash so that the consumer induces the business to whitewash. I go to the ATM, put in $1000 and get $900 out.' In his view, this would enable AFIP to better monitor transfers to businesses, with virtual wallets acting as withholding agents, similar to gas stations for fuel taxes.
The proposal emerged amid debates on the tax reform Milei's government plans to push starting December 10. However, President Javier Milei reacted harshly on his X account, targeting Álvarez Agis, who also served as deputy minister under Axel Kicillof. 'Kirchnerista = ladrón. The one who was deputy minister of Economy under Kicillof openly proposes stealing 10% of your income destined for consumption. They never think about cutting spending but only about how to collect more so they decide how much and what to spend your money on,' Milei wrote.
The president also shared allies' criticisms, calling the idea a 'total nonsense' and comparing it to a thief robbing 10% at an ATM exit. Milei did not detail alternative measures from his reform to address evasion, focusing instead on personal and political attacks against Álvarez Agis.